Why Closing Costs Differ So Much by State
The core lender fees (origination, appraisal, credit report) are similar everywhere. What creates huge state-to-state differences:
- Real estate transfer taxes — some states charge 0%, others charge 1–4% of the sale price
- Attorney requirements — 22 states require a real estate attorney to be present at closing, adding $500–$1,500
- Title insurance rates — regulated differently in each state; some states have filed rates, others are competitive
- Recording fees — vary by county within states
- Local taxes — some cities and counties layer additional taxes on top of state taxes
Use our Closing Costs Calculator to estimate your specific situation — the state averages below are useful for comparison but your actual costs depend on your loan amount, lender, and exact location.
Average Closing Costs by State (2026)
Averages shown are for a $300,000 home purchase with 20% down ($240,000 loan), including lender fees, title, and government taxes but excluding prepaid items (insurance, tax escrow) which vary by individual. Percentages reflect cost as % of sale price.
| State | Avg. Closing Costs | % of Price | Transfer Tax | Attorney Required |
|---|---|---|---|---|
| Delaware | $13,200 | 4.4% | 4.0% | No |
| New York | $12,800 | 4.3% | 1.4–2.65% | Yes |
| Washington D.C. | $11,900 | 4.0% | 1.1–2.9% | No |
| Maryland | $9,800 | 3.3% | 0.5% | No |
| Connecticut | $9,400 | 3.1% | 0.75–1.25% | Yes |
| Illinois | $8,600 | 2.9% | 0.1–0.5% | No |
| Vermont | $8,200 | 2.7% | 1.25% | Yes |
| Massachusetts | $7,900 | 2.6% | 0.456% | Yes |
| New Jersey | $7,800 | 2.6% | 1.0–1.5% | No |
| Pennsylvania | $7,500 | 2.5% | 1.0% | Yes |
| Minnesota | $7,100 | 2.4% | 0.33% | No |
| Washington | $6,900 | 2.3% | 1.1–3.0% | No |
| Hawaii | $6,800 | 2.3% | 0.1–1.0% | No |
| Rhode Island | $6,700 | 2.2% | $2.30/$500 | Yes |
| Virginia | $6,400 | 2.1% | 0.25% | No |
| Maine | $6,200 | 2.1% | 0.44% | Yes |
| Florida | $6,100 | 2.0% | 0.7% | No |
| California | $6,000 | 2.0% | 0.11% | No |
| Georgia | $5,900 | 2.0% | 0.1% | Yes |
| North Carolina | $5,700 | 1.9% | 0.2% | Yes |
| Colorado | $5,600 | 1.9% | 0.01% | No |
| Oregon | $5,500 | 1.8% | 0.1% | No |
| New Hampshire | $5,400 | 1.8% | 0.75% | Yes |
| Arizona | $5,200 | 1.7% | None | No |
| Tennessee | $5,100 | 1.7% | 0.37% | No |
| Nevada | $5,000 | 1.7% | 0.065% | No |
| Ohio | $4,900 | 1.6% | 0.1% | Yes |
| Michigan | $4,800 | 1.6% | 0.75% | No |
| South Carolina | $4,700 | 1.6% | 0.185% | Yes |
| Utah | $4,600 | 1.5% | None | No |
| Idaho | $4,500 | 1.5% | None | No |
| Wisconsin | $4,500 | 1.5% | 0.3% | No |
| Nebraska | $4,400 | 1.5% | 0.225% | No |
| Kansas | $4,300 | 1.4% | 0.26% | No |
| Texas | $4,200 | 1.4% | None | No |
| Iowa | $4,100 | 1.4% | 0.16% | No |
| Indiana | $4,000 | 1.3% | None | No |
| Missouri | $3,900 | 1.3% | None | No |
| Oklahoma | $3,900 | 1.3% | 0.015% | No |
| Arkansas | $3,800 | 1.3% | 0.33% | No |
| New Mexico | $3,800 | 1.3% | None | No |
| Louisiana | $3,700 | 1.2% | None | Yes |
| Kentucky | $3,700 | 1.2% | 0.1% | No |
| Alabama | $3,600 | 1.2% | 0.1% | No |
| South Dakota | $3,500 | 1.2% | 0.1% | No |
| North Dakota | $3,500 | 1.2% | None | No |
| Montana | $3,400 | 1.1% | None | No |
| Wyoming | $3,400 | 1.1% | None | No |
| Mississippi | $3,300 | 1.1% | None | No |
| West Virginia | $3,200 | 1.1% | 0.11% | Yes |
| Alaska | $3,100 | 1.0% | None | No |
Estimates based on $300,000 purchase price. Actual costs vary by lender, county, loan type, and negotiation. Does not include prepaids (homeowners insurance, tax escrow, prepaid interest).
The Highest Closing Cost States: Why They're Expensive
Delaware (4.4% average)
Delaware has the highest closing costs in the country, primarily because of its realty transfer tax — 4% of the sale price, split between buyer and seller (buyer pays 2%). On a $300,000 home, that's $6,000 just for transfer tax. Delaware also has higher-than-average title insurance rates.
New York (4.3% average)
New York's costs are driven by multiple layers of transfer taxes: the state transfer tax (0.4%) plus the mansion tax (1% on purchases over $1M), plus New York City taxes (1.425–2.625% for NYC purchases). Attorney fees are standard, and title insurance rates are regulated but higher than most states. Mortgage recording tax adds another 0.5–1.8% for financed purchases.
Washington D.C. (4.0% average)
D.C. charges a transfer/recordation tax of 1.1–2.9% (higher for properties over $400,000). Attorneys are commonly used though not legally required. First-time buyers who are D.C. residents may qualify for exemptions.
The Lowest Closing Cost States
States with no real estate transfer tax — including Texas, Indiana, Missouri, Montana, Wyoming, Alaska, North Dakota, New Mexico, and Arizona — tend to have the lowest closing costs. Without that tax layer, you're primarily paying lender fees and title insurance, which are more consistent nationwide.
Alaska's closing costs are notably low despite being a remote state, largely because there's no transfer tax and the title insurance market is competitive.
States That Require an Attorney at Closing
In these states, you must hire a licensed real estate attorney to conduct the closing. This is separate from the choice to hire an attorney for advice — it's legally required:
- Connecticut, Delaware, Georgia, Kansas, Kentucky, Maine, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, West Virginia
Attorney fees in these states typically run $500–$1,500. In some states, the attorney also serves as the title agent, so you may not pay a separate title company fee.
Transfer Tax: The Biggest Variable
Real estate transfer taxes (also called deed taxes, stamp taxes, or excise taxes) are the single biggest driver of closing cost differences between states. Some key facts:
- 13 states have no real estate transfer tax at all
- Some states split the tax between buyer and seller; others assign it all to one party
- Many states allow cities and counties to add local transfer taxes on top of state taxes (Philadelphia and Pittsburgh add significant local taxes on Pennsylvania transactions)
- First-time homebuyers are exempt from transfer taxes in several states including Maryland and D.C.
- Some states exempt certain transactions (inherited property, transfers between family members)
How to Estimate Your Actual Closing Costs
The state averages above are useful for planning, but your actual closing costs depend on:
- Your specific loan amount — many fees scale with loan size
- Your down payment — affects whether you pay PMI and some fee calculations
- The county — recording fees and sometimes transfer taxes vary within states
- Your lender — origination fees vary significantly; shopping lenders can save $500–$2,000
- Your loan type — FHA loans have different fee structures than conventional; VA loans have a funding fee but no PMI
Our Closing Costs Calculator factors in all of these variables to give you a personalized estimate. Use it before you start shopping lenders so you know what to expect — and what to push back on.
Can You Reduce Closing Costs?
Yes — significantly. You can't eliminate government-mandated transfer taxes, but you can reduce lender fees by shopping lenders, ask the seller to pay some costs via concessions, and choose when to close to minimize prepaid interest. See our full guide: 11 Ways to Reduce Closing Costs.